BRRRR Method Calculator
Calculate Buy, Rehab, Rent, Refinance, Repeat (BRRRR) real estate deals. Model cash-out refinance proceeds, equity velocity, cash-on-cash returns, and infinite return thresholds.
$17,906 cash remains invested in the property with $112.27/mo net cash flow.
BRRRR Acquisition & Refinance Inputs
Scaling Real Estate Portfolios with the BRRRR Method
The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is the gold standard framework popularized by real estate investors to build multimillion-dollar rental portfolios with finite capital. By acquiring distressed properties below market value, forcing appreciation through renovation, placing reliable tenants, and executing a 75% to 80% Loan-to-Value (LTV) cash-out refinance, investors recover 100% of their initial invested capital while keeping the cash-flowing asset indefinitely.
Key Investment Features
All-In Project Cost Aggregation
Combines purchase price, closing expenses, rehab renovation budget, and holding carrying costs during the rehab phase.
After-Repair-Value (ARV) Refinance Engine
Calculates new bank mortgage proceeds based on appraised ARV (70%, 75%, 80% LTV) and net cash returned.
Infinite Return Detection
Flags deals where 100%+ of total invested capital is recovered, generating an infinite Cash-on-Cash Return on zero remaining basis.
Post-Refi Cash Flow & DSCR
Models gross rental income against new principal, interest, property taxes, insurance, vacancy, maintenance, and property management.
Holding Cost Simulation
Accounts for hard-money loan interest, utilities, and property taxes incurred while the property is unrented during renovation.
Investor Pitch Deck Export
Export structured deal summaries ready to send to private money lenders and hard money partners.
Real Estate Scenarios
- ✓Residential Real Estate Investors
Evaluate distressed single-family and small multi-family (duplex, triplex, fourplex) deals on MLS and off-market wholesalers.
- ✓Hard Money & Private Capital Borrowers
Forecast exact refinance takeout proceeds required to pay off short-term 12% bridge loans.
- ✓BiggerPockets Community Members
Run institutional-grade due diligence on potential out-of-state turnkey and value-add rental markets.
- ✓Portfolio Wealth Multipliers
Recycle the exact same $50,000 to $100,000 cash pool across 5 to 10 sequential acquisitions.
Frequently Asked Questions
What is an 'infinite return' in the BRRRR method?
An infinite return occurs when the cash-out refinance proceeds are equal to or greater than the total cash you invested in the deal (purchase down payment + rehab costs + holding costs). Because you have zero of your own dollars left in the property but continue to collect monthly net cash flow, your mathematical Cash-on-Cash Return is infinite.
What is the typical seasoning period for a BRRRR cash-out refinance?
Fannie Mae and Freddie Mac conventional guidelines typically require a 6-month 'seasoning period' from the purchase date before permitting a cash-out refinance based on the new appraised After-Repair Value (ARV). Some commercial and portfolio DSCR lenders allow immediate refinancing with zero seasoning.
What happens if the property appraises lower than expected?
If the ARV appraisal comes in lower than projected, the 75% refinance proceeds will not cover your entire initial cash outlay. In this scenario, you leave some capital 'stuck' in the deal, which reduces your Cash-on-Cash return but still leaves you with a renovated, cash-flowing asset.
What expenses should be budgeted in the rental phase?
Beyond principal and interest (P&I), always budget 5% to 8% for vacancy, 5% to 10% for repairs and capital expenditures (CapEx), 8% to 10% for professional property management, plus annual property taxes and landlord insurance.
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